CNH Industrial N.V. (CNH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,687,000 | 23,551,000 | 33,428,000 | 14,779,000 | 28,079,000 |
| Property, plant and equipment | US$ in thousands | 1,913,000 | 1,532,000 | 1,475,000 | 4,923,000 | 5,269,000 |
| Fixed asset turnover | 12.90 | 15.37 | 22.66 | 3.00 | 5.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,687,000K ÷ $1,913,000K
= 12.90
The fixed asset turnover ratio for CNH Industrial N.V. has fluctuated over the past five years. The ratio stood at 12.90 in 2023, a decrease from 15.37 in 2022 and a significant decline from 22.66 in 2021. This suggests that the company generated $12.90 in revenue for every $1 of fixed assets in 2023.
The lower fixed asset turnover in 2023 compared to the previous years may indicate reduced efficiency in utilizing its fixed assets to generate revenue. This could be attributed to various factors such as underutilization of assets, changes in production processes, or a decrease in sales relative to the value of fixed assets.
Further analysis and comparison with industry benchmarks would provide additional insights into CNH Industrial N.V.'s fixed asset management efficiency and its competitive position within the sector. Additionally, it would be beneficial to assess the company's future investment plans and strategies to improve fixed asset turnover and overall operational performance.
Peer comparison
Dec 31, 2023